IFB06: 4 Things the Financial Services Industry Will Never Admit

 
When you go to the doctor you always imagine that they have your best interests in mind when you see them. The Same rule applies when you walk into a bank or financial services office. Unfortunately not always the case. With the doctor, typically their motivation is to help you get better. With the financial services industry, the motivation can be to line their own pockets. Not yours.
 

* Money and commissions are a driving factor in the financial services industry


* Finding people with values and ethics is key to establishing a great partnership


* Advisors that “eat their own cooking” should be a prerequisite


* Fees and residuals are the bread and butter of the financial services industry

 
Today’s session will be a detour from our normal programming. In today’s session, Andrew and I will riff a little about some of the things we see going on in the financial services industry. Too many people are caught unawares by the shady dealings that can go on in the finance world. We know that this may be a controversial topic, especially considering that we are in that industry now. But our goal is to educate and to set the bar higher, not fleece just for the sake of making a quick buck.
Andrew and I will talk about some of these goings on and attempt to bring to light some of these practices to help enlighten our listeners.
On to session six.
Andrew: I will start off by saying this is probably a bad move. You know, we will probably get a couple of targets on our backs. And it might even make the listeners less likely to listen to us or might make them not likes us.
Whatever it is, the way I kind of look at it is if I was in the listener’s shoes. If I was talking to someone in my family, or somebody I cared about. These are the types of things based on my limited experience and what I’ve learned so far. These are the types of things that I would want to know and that I think anybody who is just starting out should at least be aware of.
Not to be disappointed or feel the cards are stacked against you. But really just to be aware and understand. And from there can give you a better filter. If you can figure out what drives people to do what they do. Understand where people’s interests are. Where the financial incentives are. If you can really understand that it goes a long way towards getting a better grasp on why things tend to work the way they do.
Dave: Yeah, I would agree with that. As far as the target on our back, or upsetting or offending people. Truth always sets you free. And we really need to talk about what goes in the industry.
You can see people out there that are in it for themselves as opposed to acting as a fiduciary. Really being responsible for the people they are representing and giving advice to.
A more take on the recent rollback of the rules and laws governing fiduciary that affects a lot of people.
There are a lot of people in the financial services industry that are out there to make a buck. They don’t a crap about who they hurt or how much they mislead people. Don’t tell them the whole story or don’t give them all the information.
And I think it is our job and duty as someone who cares about how somebody invests for their futures, save for their retirement. Saves for their children’s retirement. Help them be more responsible and be better financially for themselves. It is our responsibility and duty to bring those things to light. The only way to get these things to stop is to make more people aware of them. So that people will take action on things that upset them.
Andrew: The key to that being aware. And I think it’s important to be aware of where these words are coming from. This is myself and you,